Chhattisgarh Government Returns Bastar Land Acquired for Tata Steel Plant to Farmers

Reported by

Riddhi PandeyLand Conflict Watch

Last updated on

October 4, 2021

Location of Conflict


Chhote Paroda, Belar, Bandaji, Kumhali, Chhindgaon, Takraguda, Dhuragaon, Sirisguda, Dabpal and Beliyapal


This is a Left Wing Extremism Affected District

This is A Schedule Five District

Reason or Cause of Conflict

Steel Plant



People Affected by Conflict


Land Area Affected (in Hectares)



Starting Year






In 2005, Tata Steel had signed a memorandum of understanding with the Chhattisgarh State Industrial Development Corporation to build a mega steel plant in Lohandiguda in Bastar district. The land, measuring approximately 2,000 hectares, was acquired from 10 villages, affecting over 1,700 farmers.  However, as many as 542 farmers refused to give up their land and accept compensation. They complained that the promises made in the past for land acquisition were also not kept and that the affected people did not get proper rehabilitation. Consequently, Tata Steel did not develop the proposed plant for more than a decade due to the persisting disagreement.  In 2015, the Bharatiya Janata Party, which was in power then, cancelled Tata's licence.  In August 2016, Tata Steel announced its withdrawal from Lohandiguda citing law and order problems due to the presence of Naxalites in the region. However, the state government refused to return the land to the farmers as it wanted to create a land bank for industrial purposes. The Congress, who was in opposition then, maintained that the government should return the acquired land to its owners.  In December 2018, when the Congress came to power in the state, Chief Minister Bhupesh Bhagel decided to return the land acquired from farmers for a steel plant of the Tata Group. In its poll manifesto for the Assembly elections, the Congress had promised to return those lands to farmers that remained unutilised by companies after five years of land acquisition.  In January 2019, the state government finally issued an order to return 1764.61 hectares of land to the villagers. The farmers have now reportedly taken possession of their plots. 

Demand/Contention of the Affected Community

Refusal to give up land for the project, Demand to get back acquired land

Region Classification


Type of Land


Type of Common Land

Forest and Non-Forest

Total investment involved (in Crores):


Type of investment:

Cost of Project

Year of Estimation

Has the Conflict Ended?


When did it end?

Why did the conflict end?

Categories of Legislations Involved in the Conflict

Land Acquisition Laws, Other, Case Laws

Legislations/Policies Involved

Whether claims/objections were made as per procedure in the relevant statute

What was the claim(s)/objection(s) raised by the community? What was the decision of the concerned government department?

Legal Processes and Loopholes Enabling the Conflict:

Violation of LARR Act

Legal Status:

Out of Court

Status of Case In Court

Whether any adjudicatory body was approached

Name of the adjudicatory body

Name(s) of the Court(s)

Case Number

Major Human Rights Violations Related to the Conflict:

Whether criminal law was used against protestors

Official name of the criminal law. Did the case reach trial?

Reported Details of the Violation:

Date of Violation

Location of Violation

Nature of Protest

Government Departments Involved in the Conflict:

Chhattisgarh State Industrial Development Corporation

PSUs Involved in the Conflict:

Did LCW Approach Government Authorities for Comments?

Name, Designation and Comment of the Government Authorities Approached

Corporate Parties Involved in the Conflict:

Tata Steel

Did LCW Approach Corporate Parties for Comments?

Name, Designation and Comment of Corporate Authorities Approached

Other Parties Involved in the Conflict:

Resources Related to Conflict

  • News Articles Related to the Conflict:
  • Documents Related to the Conflict:
  • Links Related to the Conflict:
No Images Available

Documented By

Riddhi Pandey

Reviewed By

Riddhi Pandey

Updated By

Riddhi Pandey

Edited By

Riddhi PandeyLand Conflict Watch

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